India Canada Resume CEPA Talks Aiming to Finalize Trade Deal by 2026
India and Canada are resuming negotiations for the Comprehensive Economic Partnership Agreement (CEPA) in Ottawa from October 5 to 9, marking the fifth round of talks aimed at finalizing the trade deal by the end of 2026. Both nations are looking to strengthen trade and investment ties following a period of diplomatic tension. Key areas of discussion include energy, critical minerals, aerospace, and artificial intelligence.
Canadian International Trade Minister Maninder Sidhu expressed optimism about concluding the CEPA, highlighting recent discussions with Indian Commerce Minister Piyush Goyal. Sidhu emphasized the importance of building momentum from his visit to Mumbai and talks at the G20 summit. The urgency for both countries to strengthen economic ties has increased due to strained trade relations with the U.S. over tariffs.
Energy cooperation is a primary focus for Canada, which aims to support India’s growing energy needs. Sidhu noted that India’s economy is expanding at 7% annually, leading to a projected 70% increase in energy demand by 2035. Canada is prepared to meet this demand, with significant investments in liquefied natural gas (LNG) projects, including a $33 billion investment in LNG Canada Phase 2, set to become the second-largest facility of its kind globally.
Critical minerals also feature prominently in the negotiations, with both countries looking to diversify their supply chains. Sidhu pointed out Canada’s potential as a long-term supplier to India, particularly as demand for energy and critical minerals rises. The Canadian minister emphasized the importance of collaboration across various sectors, including aerospace and research.
The upcoming round in Ottawa follows four previous rounds, the latest of which concluded in New Delhi on September 18. Both officials are focused on reaching a mutually beneficial agreement by the end of 2026. Following the Ottawa negotiations, Sidhu will lead a Canadian trade mission to India from October 12 to 17, which is expected to include nearly 300 delegates from various sectors. This initiative aims to foster new business opportunities and strengthen commercial ties between the two countries.